Question 1 Green Ltd manufactures a product 246 using three materials, J. P. and Y. The...

 

Transcribed Image Text:

Question 1 Green Ltd manufactures a product "246" using three materials, J. P. and Y. The standard information to produce one unit of product "246" is as follows: Material J Material P Material Y 3 kg at £5.00 per kg 2 kg at £7.50 per kg 5 kg at £2.00 per kg In its financial year 2021, Green Ltd produced 600 units of product "246", using: 1,890 kg of material J 1,230 kg of material P; and 2,980 kg of material Y. As the assistant Management Accountant, you are required to prepare variance analysis calculations and draft clear explanations for the management team of Green Ltd. (Round up to two decimals in your calculations if required) Required: a) Calculate the material usage mix variance for each material and in total using the "Individual Unit" method. You are required to show all workings. (8 marks) b) Calculate the material usage mix variance for each material and in total using the "Weighted Average" method. You are required to show all workings. (10 marks) c) Using your solutions from above, explain the difference in the material usage mix variance for Material Y using the individual unit method and the material usage mix variance for Material Y using the weighted average method. You are also required to provide an overall written explanation of the final variance figure. Word count: no more than 800 words. (12 marks) d) Calculate the yield variance in total using the "Weighted Average™ method. You are required to show all workings. (5 marks) e) Using the information from d), provide a written explanation of the final yield variance figure. Word count: no more than 250 words. (3 marks) 1) Discuss the role and objectives of the main stakeholders engaged in Public Private Partnership (PPP) agreements. Word count no more than 750 words. (12 marks) Question 1 Green Ltd manufactures a product "246" using three materials, J. P. and Y. The standard information to produce one unit of product "246" is as follows: Material J Material P Material Y 3 kg at £5.00 per kg 2 kg at £7.50 per kg 5 kg at £2.00 per kg In its financial year 2021, Green Ltd produced 600 units of product "246", using: 1,890 kg of material J 1,230 kg of material P; and 2,980 kg of material Y. As the assistant Management Accountant, you are required to prepare variance analysis calculations and draft clear explanations for the management team of Green Ltd. (Round up to two decimals in your calculations if required) Required: a) Calculate the material usage mix variance for each material and in total using the "Individual Unit" method. You are required to show all workings. (8 marks) b) Calculate the material usage mix variance for each material and in total using the "Weighted Average" method. You are required to show all workings. (10 marks) c) Using your solutions from above, explain the difference in the material usage mix variance for Material Y using the individual unit method and the material usage mix variance for Material Y using the weighted average method. You are also required to provide an overall written explanation of the final variance figure. Word count: no more than 800 words. (12 marks) d) Calculate the yield variance in total using the "Weighted Average™ method. You are required to show all workings. (5 marks) e) Using the information from d), provide a written explanation of the final yield variance figure. Word count: no more than 250 words. (3 marks) 1) Discuss the role and objectives of the main stakeholders engaged in Public Private Partnership (PPP) agreements. Word count no more than 750 words. (12 marks)

Answer rating: 100% (QA)

ANSWER a Material Usage Mix Variance for Material J 3 kg x 500 1890 kg x 475 1575 b Material Usage Mix Variance for Material P 2 kg x 750 1230 kg x 65... View the full answer